Economic Overview

Thailand’s economy has continued to struggle in the face of the global COVID-19 pandemic. The country’s GDP forecast, by FocusEconomics, had been revised to a -7.4% contraction at the end of 2020, which represents a slight increase from the previous forecast made in the second quarter, of -0.7%. The Thai government is anticipating an economic recovery in 2021, representing a GDP increase of 3.1%, though this is dependent upon an improvement in the management of the pandemic and a return of international tourism.

The Thai government has started to allow tourists to enter the country on a long-stay visa program, though the maximum number of tourists permitted under this scheme is 1,200 per month, so there is little benefit for the ailing hospitality sector. The tourists are required to complete a two-week quarantine on arrival at one of the government quarantine hotels, though there are some hotels offering accommodation as alternatives.